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A new "basic economy" class, that doesn't allow you to take carry on baggage and makes you sit in the middle of the row? That's exactly what I want, pissed off
by cbanek 9y ago
A new "basic economy" class, that doesn't allow you to take carry on baggage and makes you sit in the middle of the row? That's exactly what I want, pissed off people in the middle of every row.
Now introducing "coffin economy" - once you climb into our sleek new fully reclined seatboxes, you'll wish you were dead!
One thing the article doesn't point out is that oil prices have been on a tear lower, which allow the airlines to get more profitable. We'll see how long that lasts. There's a reason why the P/E multiples of the airlines is well below that of the rest of the S&P
- jdavis703 9y agoI have no problem with basic economy for a short flight (say around an hour). It's no worse of an experience than dealing with an hour commute on public transit.
- ice109 9y ago>P/E multiples of the airlines is well below that of the rest of the S&P umm that means they're discounted right? you're suggesting contradictory things
- phreeza 9y agoIt means the market expects lower profits in the future.
- cbanek 9y agoIf you want to call it a discount, that's fair, but it's not really. People aren't willing to pay 15 or 20x earnings, they want to pay 9 - 12x earnings. You might call this "value" investing, or a "value" trap. This generally suggests that the income stream is less reliable to maintain, and allows for heavier discounting of future earnings. On the other hand, for a "growth" company, a high P/E might be justifiable, because in a few years they will have higher earnings.
- cperciva 9y agoA new "basic economy" class, that doesn't allow you to take carry on baggage and makes you sit in the middle of the row? That's exactly what I want, pissed off people in the middle of every row. Until aircraft get completely redesigned, someone is going to be sitting in the middle of a row. Why shouldn't they pay a lower price?
- concede_pluto 9y agoIf I could fly capsule-hotel class I'd love to try it. I think it'd be less awkward and uncomfortable. But it's not going to happen because airlines need to get passengers on and off quickly. http://philip.greenspun.com/flying/unions-and-airlines http://philip.greenspun.com/flying/unions-and-airlines is a compelling explanation of why the pilot's unions have the industry by the throat. I can't imagine investing in a business where every labor negotiation is an unconditional surrender because saying no means you have to shut down indefinitely.
- SeoxyS 9y agoPeople call United's 772 and 747-400 2-4-2 seat business class configuration "coffin seats" because of how stacked and narrow they are. I've flown it, it's not particularly comfortable; but at least it's a lie-flat seat.